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Payday Loan Myths

Cash advance loans are unregulated.

Not true! Numerous states have very specific regulations concerning short-term loans. These regulatory provisions contain legal consumer guides that monitor and control the maximum and minimum amounts received through cash advances, as well as time constraints and interest rate caps. State boards have also helped in creating and maintaining payday loan regulations.

According to the Truth In Lending Act, short-term lenders are legally required to clearly outline all fees and disclose all rates and to the customer. If you find that a local or web-based cash advance business is not adhering to your state regulations, please contact your local police department.

If I take out a short-term loan,
I will be trapped in a cycle of debt.

Many people have a negative image of short-term loans, but most of the concern is for those that approach cash advance irresponsibly.

It's important to understand that a short-term cash advance is not meant to function as a long term credit account or bank loan. A short-term loan is given under the agreement that it will be paid off on the applicant’s next payday (hence the term "payday loan").

Regulations allow cash advance payment periods to be extended, but not indefinitely. The limited payback period ensures that applicants do not get stuck in long term, high interest rate loans.

Cash advances take advantage of the poor,
minorities and military personnel.

Cash advances are an alternative financial service chosen each day by households without access to bank loans or credit cards. And when a broken down car can lead to loss of employment or a bounced rent check can lead to eviction, these services can mean the difference between staying afloat and losing everything.

Short-term cash advance loans made by reputable lenders do not attempt to take advantage of anyone. These loans are marketed toward subprime clients without a distinction in employment, race or culture. The most common short-term borrower is middle-income, under 45 years old, currently employed and has an active checking account.

Payday loans interest rates are too high.

A long-term credit card or bank loan averages 7 percent interest over several years or longer. A short-term cash advance can average 15 to 30 percent interest over a maximum of three weeks. Incurring a series of bank overdraft fees, on the other hand, can quickly escalate into an implied interest rate much steeper than that charged by payday lenders.

This difference in interest rates is not because the short-term lender is trying to take advantage of emergencies -- it's because they assume a greater risk at the same profit level as other financial institutions.

Payday loan companies are predatory
lenders or “loan sharks.”

Short-term payday loans fill a necessary role in the economic world. At first glance, the interest rates seem high, but it is important to understand that payday loans are NOT long-term debt solutions.

There are no annual or hidden fees. Cash advances are not meant for persons who cannot afford to remit payment on their next payday. These loans are designed for hard-working adults with an immediate financial emergency that cannot be satisfied through bank or union loans.

A cash advance will affect my credit score.

While frequent credit checks can potentially lower your score, cash advance loans do not require a standard credit check. You can rest easy knowing that your emergency need will be met while leaving your credit score intact.

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THE OPERATOR OF THIS WEB SITE IS NOT A LENDER, does not broker loans to lenders and does not make short term cash loans or credit decisions. This Web Site does not constitute an offer or solicitation to lend. This site will submit the information you provide to a lender. Providing your information on this Web Site does not guarantee that you will be approved for a short term cash loan. The operator of this Web Site is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. Not all lenders can provide up to $1,000. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required. This service is not available in all states, and the states serviced by this Web Site may change from time to time and without notice. For details, questions or concerns regarding your short term cash loan, please contact your lender directly. Short term cash loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a short term cash loan based upon lender requirements. To unsubscribe or opt-out of any future solicitations you are receiving from us, please email us at or call our toll free number.

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Call us! 1-800-591-5063

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